Lam Research (LRCX) Q3 2026 earnings summary

Executive summary

• Revenues and profitability for the March 2026 quarter reached the upper end of guidance, with EPS exceeding the high end of the range.

• Achieved record revenue and EPS, including the first $2.1 billion quarter for the Customer Support Business Group.

• Strong momentum and performance attributed to accelerating AI-driven semiconductor demand and strategic investments in R&D and operational execution.

• Positioned for sustained outperformance and growth, supported by technology inflections and multi-product solutions.

• Short-term volatility from trade restrictions and tariffs, but long-term outlook remains positive due to secular semiconductor demand.

Financial highlights

• March 2026 quarter revenue was $5.84 billion, up 9% sequentially and 24% year-over-year.

• Gross margin reached 49.9% (non-GAAP), at the high end of guidance, and 49.8% (GAAP), both up sequentially.

• Operating margin was 35% (GAAP and non-GAAP), also at the high end of guidance.

• Diluted EPS was a record $1.47 (non-GAAP) and $1.45 (GAAP), both up over 15% sequentially.

• Net income for Q3 FY26 was $1.83 billion (GAAP), up from $1.59 billion in the prior quarter.

Outlook and guidance

• June 2026 quarter revenue guidance is $6.60 billion ±$400 million.

• Gross margin expected at 50.5% ±1 percentage point; operating margin at 36.5% ±1 percentage point.

• EPS guidance for June quarter is $1.65 ±$0.15.

• H2 2026 revenues expected to exceed H1, with continued strong demand and outperformance setup.

• Wafer fabrication equipment (WFE) for 2026 now expected at $140 billion, with upside bias and further growth anticipated in 2027.